Government announces $79m funding boost for aged residential care services

The Minister of Health says a funding boost for aged residential care services will help older people who are waiting too long to get the care they need.

The government has committed a four percent increase - worth approximately $79 million - for aged care providers in the coming financial year.

Simeon Brown said - as part of the funding package - the providers would be expected to receive admissions from hospitals during weekends.

"Too often, older people remain in hospital longer than necessary while waiting to transition into residential care, contributing to delayed discharges and reducing capacity for other patients who need hospital treatment.

"Helping people move into the right care setting sooner can improve patient outcomes, reduce pressure on hospitals, and ensure beds are available for those who need acute and urgent care," Brown said.

He said the funding boost would strengthen aged residential care services and help the sector cope with the growing needs of an ageing population.

"We know demand for aged care services is growing as New Zealand's population ages. This investment will help providers respond to that demand and continue delivering quality care for older New Zealanders," Brown said.

The funding would be delivered by a 2.66 percent base increase, alongside targeted investment to improve service delivery and enhance access to care.

Associate Minister of Health Casey Costello said the current aged care model was out of date and reform was underway to ensure the sector evolved to meet future demand.

"While there is more work ahead - with the Aged Care Ministerial Advisory Group to deliver its report to Ministers in the next few weeks - the funding uplift provides additional support to the sector as we work through the reform process," she said.

"New Zealand has a strong aged care sector, supported by dedicated providers and staff who deliver quality care every day. This funding will help services remain responsive to growing demand while we continue the work needed to build a more sustainable system for the future."

Costello said the initiative would improve access to care and strengthen support for older New Zealanders and their whānau.

Head of the Aged Care Association Tracey Martin told Morning Report it was pleased to see the government recognising that its sector could relieve pressure on hospitals.

She said some of the funding would go towards getting more people discharged from hospital and sent to residential care providers.

Aged residential care providers had four times the bed hospitals did, however, they were a